PRACTICAL Operations Management

Natalie C. SimpsonUniversity at Buffalo (SUNY)

Philip G. HancockGlenochil Associates, LLC

HERCHER Publishing IncorporatedNaperville, Illinois

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Richard T. Hercher Jr., PublisherElizabeth Hercher, Editorial AssistantCarol Rose, Managing EditorLaurie Entringer, DesignerPrecision Graphics, CompositionTributary Sales Resources, MarketingCourier Companies, Inc., Printing

Cover photo, Getty Images

©2013 by Hercher Publishing IncorporatedAll Rights Reserved.Printed in the United States of America

ISBN: 978-1-939297-00-6

HERCHER Publishing IncorporatedNaperville, Illinois 60564

Natalie Simpson is an Associate Professor of Operations Management and Strategy at the University at Buffalo (SUNY) School of Management. Natalie received a BFA from the University of North Carolina School of the Arts and both an MBA and PhD from the University of Florida. She has earned numerous distinctions including the SUNY Chancellor’s Award for Teaching Excellence.

Philip Hancock is co-owner of Glenochil Associates, LLC, a consultant and trainer, and a Certified Professional in Supply Management (CPSM) and Supplier Diversity (CPSD). Philip received an MBA and PhD from Napier University in Scotland, and has substantial experience in both commercial banking and government procurement.

Philip and Natalie served as the original tutors in the NoteShaper™ video tutorials accompanying the practice problems in this book.

about the authors

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Contents iiiphoto credits

iii

Chapter 1productivity in road construction, Fotolia. energy as input, Fotolia. Landfills as processes, Fotolia. recycling as transformation, Fang song. Mining as transformation, Fotolia. physical therapy as pure service, Fotolia. containerized Freight and Global supply chains, Fotolia. Military operations, Fotolia. temp Facilities in project, event, and incident Management, Fang song. incident Management in health care, Fang song. studio cameraman, Fotolia.

Chapter 2enterprise resource planning (erp) in retail chains, Fotolia. Labor-intensive processes in Modern Manufacturing, Fotolia.the complexity of Flexibility, Fotolia. Quality and perception in service systems, Fotolia. Modern Make-to-order Goods production, Fotolia. automobiles as Maturing products, Fotolia. process selection in agriculture, Fotolia. electricity generating facility, Fotolia.

Chapter 3 Modern-day apprenticeships, Fotolia. customer perception in Visitor reception areas, Fotolia. some requirements of brainstorming, Fotolia. the distinction between Natural and assignable Variation, catherine chen Kuan Yu, King Zhi Quan, and New Wei sian. end of Life cycle problems from changing technology, Fotolia. Mass customization of emergency Vehicles, Fotolia. solar panel installation and process safety, Fotolia. construction site, webcam, June 7, 2012, Germany.

Chapter 4 demand Forecasting for time-sensitive products, Fang song. supermarket Forecasting error, patrick tasner. Forecasting construction activity, daniel divirgilio. copy center, Matthew raffel.

Chapter 5 design vs effective capacity of parking, Matthew raffel. capacity cushion at a commuter train station, Mardiani tri. two Queues for two bank Machines, Wu Xiaoling. Maintaining Queue discipline with take-a-Number system, Fang song. Loss of Queue discipline on a serpentine Line, ahn byung hyun. toll plaza, webcam, May 28, 2012, eastern usa.

Chapter 6 custom Kitchen cabinetry as ato operation, Fang song. Wine racks, Fotolia.

Chapter 7 precedence relationships between tasks, cai Jinxuan. the risks in an unusual project, webcam, June 6, 2012, New York. construction site, webcam, June 7, 2012, Germany.

Chapter 8 Locating the Global population, webcam, June 10, 2012, tokyo. Measuring distance in urban Landscapes, sagarika das. Link between Maritime and Ground-based Logistical systems, webcam, June 7, 2012, Lyttelton, New Zealand. hub-and-spoke

passenger Networks, Jiang Luwei. Government influence on Ground-based Logistics, Fotolia. Maritime Freight containers at dockside, Fotolia. people on street corner and outside vendors, webcam, June 10, 2012, times square, New York.

Chapter 9 upstream inventory in the restaurant supply chain, Jen hartung. information technology as strategic security, daniel divirgilio. handling inventory as a third party, Fotolia. border delays in Global sourcing, webcam, June 14, 2012, Vancouver, british columbia. contract Monitoring and compliance in construction, daniel divirgilio. child playing soccer, Fotolia.

Chapter 10 retail sKus, eunice Lim. raw Materials as Finished Goods, Fang song. pipeline stock, webcam, June 4, 2012, panama canal. inconvenient direct storage costs, Fang song. retail stock out, Wu Xiaoling. the c items from an abc policy, Fotolia. animal hospital, Fotolia.

Chapter 11 chasing demand by renting temporary Locations, daniel divirgilio. Leveling the demand for roadways with pricing, Lee Wei bin. dependent demand items within an external hard drive, Jeffrey szczepaniak. Wine racks, Fotolia.

Chapter 12 the presence of high Fixed costs, Fotolia. bakery bin-based signaling systems, Jiang Luwei. Wireless devices for inventory tracking, Fotolia. railcars moving coal, Fotolia.

Chapter 13 assignable Variation in Fresh eggs, steven cervino. toll plaza, webcam, May 28, 2012, eastern usa.

Chapter 14 Four Work centers in an industrial Job shop, Fotolia. the challenge of FcFs, Fotolia. bottleneck problems with real-time traffic, King Zhi Quan and Khiew Zhi Qiang. Making Work center assignments obvious in dynamic systems, Fotolia. telecommunications in event Management, Fotolia. copy center, Matthew raffel.

Chapter 15 planning Volunteer operations, Jiang Luwei. disruptive innovation in steel Making, Fotolia. cognitive bias against black swans, Fotolia. strategic risks in airline schedules, Fotolia. structure Fires as emergencies, Fotolia. urban Flooding crisis, Fotolia. risk Management in Maritime shipping, Fotolia. redundancy from Green technology, Fotolia. trade show single-period inventory planning, Justin Maggio. one temporary organization from three available Groups, Fotolia. bricolage with cargo containers, Fotolia. airport towers for situational awareness, Fotolia. effeciency versus effectiveness in donkey transport, Fotolia. the Last-Mile problem after an earthquake, Fotolia. studio cameraman, Fotolia.

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This book differs from other OM textbooks. First, we were determined to tell the whole story of operations management, including an entire chapter on incident and disruption management, recognizing that operations don’t always proceed as planned. Second, we wanted to provide this balanced story of OM at a reasonable price to students. We felt both objectives were worthy and both could be achieved, provided that we rebooted the format for this kind of text by framing concepts and ana-lytics with a practical bent. Our aim is to provide a learn-ing tool students will use more of---and more affordably too. In our fifteen concise chapters, we hope to convince students that operations management is action itself, meaning that they should pick up a pencil and try it. To pursue all these ambitions simultaneously, we developed several features you’ll see throughout the manuscript:

• Threaded scenarios. Every time an analytical methodology is introduced, it is demonstrated in the context of a case study that unfolds through-out the chapter. These demonstration scenarios “thread” through the general discussion of each chapter, presenting conceptual material in action. One major objective of the threaded scenarios is to clarify how operations management is an active process, by viewing it through the eyes of one who is putting the tools to work.

• Tiered end-of-chapter content. To support self-guided learning, end-of-chapter content is divided into tiers of resources, each suited to a different purpose. After each summary, key word review, and discussion questions, chapter exercises begin with a set of Minute Answer problems, or qualita-tive quiz questions most appropriately answered with one or two words. Minute Answer serves as a warm-up conceptual review to the subsequent Quick Start problems, which are quantitative ques-tions that require the application of a single for-mula or numerical principle. Quick Start is followed by Ramp Up questions, which are also single-answer quantitative queries, but many are quite challenging. Ramp Up questions require additional

confidence in the material, because some aspect of each problem is hidden. Chapter practice problems conclude with full-scale, multipart Scenarios, many of which are similar to threaded scenarios earlier in the chapter. Finally, each chapter concludes with a two-paged case study, requiring a methodology from within the chapter but also requiring some creative adaptation to address the issues posed there. Short answers to all practice problems are available in the back of the text, but case notes are available only to instructors.

• Online support. To keep the overall size of this book under control, we placed some problems in the book, but more problems—with answers—on-line at NoteShaper.com. To help with those mo-ments when students get stuck, the NoteShaperTM site also houses a library of video tutorials provid-ing step-by-step instruction on how to solve each of the problems in the book, accessible for a small fee.

We also controlled the size of the book by being re-ally picky about the photographs. Honestly, this book has fewer pictures than some OM textbooks, but each of ours had to earn its space by telling some part of the OM story. We tried to use good page composition to make the book easier to use, nice to look at, and relatively lean, considering the size of that story.

SOME ROADS NOT TAkENNo matter how we economized through page design, ev-erything OM would not fit in this book. While we take no joy in not writing about something valuable, we had to make some hard choices about what to leave out. Here is our thinking about about three of these choices in par-ticular:

• History of operations management. Operations management can be traced back thousands of years. While OM’s deepest roots are rarely acknowl-edged, some textbooks do examine history from the Industrial Revolution through to the present day,

to the iNstructor

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v

chronicling the names of famous contributors to the field. Instead, we wove the mention of important names into the book’s content throughout, forgoing a specific historical section.

• Linear programming. Linear programming and related algorithms such as the transportation and assignment methods are powerful techniques in optimization. It grieved us to exclude discussion of them from the text, especially when you can see the results of their use in certain sections, such as the optimal aggregate plan for Main House Gam-ing in Chapter 14. But we structured this text with the principle of never introducing a technique without explaining exactly how you could put that technique to work. We hope to complete a small companion volume for this book soon, dedicated to linear programming, optimization, and other sup-porting topics from decision science.

• Forecasting techniques. Almost every OM text-book has a chapter on forecasting, including this one. We can imagine that most OM textbook authors aren’t completely happy with their fore-casting chapter (like us), because there is so much more that could be included. Techniques such as centered moving averages, nonlinear regression analysis, and trend-adjusted exponential smoothing are just a few of the many intriguing tools that we don’t cover, simply because we couldn’t find space.

ACkNOwLEDGMENTS Like many complex creative endeavors, this book did not appear instantly, nor is it the result of a few people. What we wrote first appeared as bulky, black-and-white spiral-bound prototypes of today’s book, hauled around by over 1,200 undergraduate students at the University at Buffalo (UB) and the Singapore Institute of Management (SIM). We are forever grateful to this first wave of patient con-tributors, as their sharp eyes corrected and refined the manuscript each semester for two years before we then submitted it for publication. Thank you also to David Wagner of Great Lakes Graphics and Printing at UB, who would marshal these rough-cut, ever-changing, course-pack versions into production on short notice, without missing a single deadline or misplacing a single page.

UB and SIM students shaped this textbook’s illustra-tions as well, because many of the images you see now were originally captured by them. We would like to thank Fang Song in particular, for providing no less than eight

of the images of important conceptual content. In addi-tion we thank these student photographers:

Byung Hyun Ahn Eunice Lim Patrick Tasner Lee Wei Bin Jiang Luwei Mardiani Tri

Steven Cervino Justin Maggio Wu Xiaoling Catherine Chen Khiew Zhi Qiang Sagarika Das

King Zhi Quan Daniel Divigilio Matthew Raffel Jennifer Hartung New Wei Sian Cai Jinxuan

Jeffrey Szczepaniak

Several colleague reviewers provided useful sugges-tions that we did our best to incorporate into the final version. As in any other operation, we faced conflicting requests and suggestions, which we tried to balance with our overall goals of a practical and affordable text. We are especially grateful to the following colleagues for their thoughtful investment of time and personal expertise:

Arash Azadegan—Rutgers University Gregory Bier—University of Missouri Susan Cholette—San Francisco State University Chen H. Chung —University of Kentucky Lori Cook—DePaul University Matthew Drake—Dusquesne University Derrick D’Souza—University of North TexasHarold Frazer—California State University, FullertonHector Guerrero—College of William and Mary Apurva Jain—University of Washington Gordon Johnson—California State University,

NorthridgeCasey Kleindienst—California State University,

Fullerton Taeho Park—San Jose State University Cynthia Wallin—Brigham Young UniversityTheresa Wells—University of Wisconsin, Eau Claire

We hope all will be happy with the published result.Copy editor Carol Rose trained the manuscript to

speak out both confidently and correctly. Carol combed through each page of what you see today, although those adolescent pages didn’t flow or even look nearly as nice as they do now. Our grateful thanks to Carol for her ex-ceptional skill, and to Laurie Entringer, Kirsten Denni-son, and Jan Troutt for their transformative design work.

Finally, like anything new, this book needed a cham-pion. Thank you, Dick Hercher, for stepping into that role and bringing all of us together.

Natalie C. SimpsonPhilip G. Hancock

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vi To the Instructor

Operations management is ultimately about human en-deavor, so it applies to any industry and any organization, be it a global supply chain for consumer goods, a local nonprofit agency, or an individual entrepreneur’s latest project. While you may have been unaware of its formal terminology, you’ve been observing and participating in operations for years before you opened this book. Per-haps you felt a distinct frustration when you couldn’t locate the back of a long waiting line, so you weren’t sure where you should stand. In that case, the phrase “queue discipline” probably wasn’t floating through your thoughts, but you were annoyed with this concept none-theless. You may have once considered packing two of something because it was especially important to have at least one, such as bringing two calculators to an exam. You aren’t likely to have thought explicitly of the role of redundancy in strengthening reliability, but that is the principle you were considering. Thus, the purpose of this introductory book is really to reintroduce you to a topic you began many years ago, this time empowering your senses with new language and analytics.

This book differs from other OM textbooks. First, we were determined to tell you the whole story of OM, including an entire chapter on incident and disruption management, recognizing that your endeavors won’t al-ways proceed smoothly, but that is no reason to be either fearful or unprepared. And yet, we wanted to create an affordable textbook, plus we hoped to convince you that operations management is action itself, meaning that you should pick up a pencil and try it for yourself, to make it your own. To pursue all these ambitions simultaneously, we developed several features you will see throughout the upcoming pages:

• Threaded scenarios. Operational analysis is an active process, one that you can—and in the future, probably will—participate in. We want you to see operations management as both an exciting and a hands-on undertaking that you can be involved in. To start you in that direction, each chapter features threaded scenarios in which each technique dis-cussed in general is then put to work immediately

in the setting of a certain organization. Within the scenario, you see the problem through the analyst’s eyes, unfolding in the analyst’s own handwriting. In this first phase of learning, you are looking over someone else’s shoulder, watching this person tackle the situation, and seeing what insight they draw from it.

• Tiered chapter problems. When you arrive at the end of a chapter, you naturally look for similar problems to practice. To support your learning, practice problems here are divided into four distinct tiers, each with a different suggested purpose. To begin, Minute Answer questions are short, qualita-tive queries that can be answered with a word or two, quizzing you on conceptual terms and rela-tionships. Minute Answer questions are suggested as a warm-up to computational practice. To start working with numbers, try Quick Start problems: these are always single-answer queries, requir-ing the direct application of a single equation or method from the chapter. Once your confidence be-gins to build, try that chapter’s Ramp Up problems next, although please don’t discourage too quickly. Like Quick Start, Ramp Up problems are short, single-answer questions, but unlike Quick Start many of these questions are rather difficult. Ramp Up problems are puzzles, where something is miss-ing or disguised, requiring use of the same material as from Quick Start, but more creative thinking. Finally, the problem sets end in Scenarios, invit-ing you to work as the analyst. These are the more comprehensive problems, providing an extended description of some situation and multipart ques-tions to solve. Here you won’t be using a single equation, but you will be working through many of the same analytical steps you first saw unfolding in the threaded scenarios earlier.

• Online support. Analysis takes practice, and some-times you get stuck. To help with practice but keep the size of this book under control, we placed some problems in the book, but more problems—with

Begin, be bold and venture to be wise.—Horace

to the studeNt

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vii

answers—online at NoteShaper.com. To help with those moments in which you sometimes get stuck, the NoteShaper™ site also houses a library of video tutorials providing step-by-step instruction on how to solve each of the problems in the book, acces-sible for a small fee.

While we don’t know if you are considering a supply chain major or if you consider yourself an artist (or both), what we do know is that there’s something, somewhere in the story of OM that is of value to you. Keeping this

in mind, we’ve set out to weave this story from as many different endeavors as possible, including agile manufac-turing, health care, disaster relief, airline logistics, and event management. We hope you’ll see something in that rich landscape that fits your ambitions.

Thank you for your interest in operations manage-ment. We wish you the best of luck, wherever you may venture.

Natalie C. SimpsonPhilip G. Hancock

Having dif�culty with a practice problem? Then visit noteshaper.com to �nd:• video tutorials explaining all problems at the end of each chapter in this book• additional problems for practice, including video tutorialsHappy studying!

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viii To Students

Chapter 1 Introduction to Operations Management 1Chapter 2 Providing Goods and Services 29Chapter 3 Product Quality and Development 51Chapter 4 Forecasting 85

Chapter 5 Capacity and Waiting 123Chapter 6 Process and Facility Selection 155Chapter 7 Project Management 189Chapter 8 Location Planning and Logistics 227

Chapter 9 Purchasing and Supply Chain Partnering 257Chapter 10 Inventory Management 283Chapter 11 Aggregate and Material Requirements Planning 319Chapter 12 Lean Operations 365

Chapter 13 Quality Control 387Chapter 14 Scheduling and Real-Time Operations 419Chapter 15 Incident and Disruption Management 451

Appendix A Answers 489Appendix B z-Values from Infinity to z 494Appendix C z-Values from Zero to z 495

Index 496

PART 1

PART 2

PART 3

PART 4

eSSeNTiAlS

PlANNiNg oPeRATioNS

MANAgiNg oPeRATioNS

ACTioN ANd AdAPTATioN

viii To the Instructor brieF coNteNts

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coNteNts

Chapter 1 Introduction to Operations Management 1essential operations Management 2Productivity/Sustainability/Responsibility

Classifying operations 8Tangibility/Supply Chains/Governance/Uncertainty and Control

operations Managers 18Decision-making/Operations Management within an Organization/Jobs and Job Titles in Operations/Professional Organizations and Certifications/About this Book

Summary 24, key Terms 24, Discussion Questions 24, Problems 25 Case Study: Convex Productions 27

Chapter 2 Providing Goods and Services 29Business Strategy 30Vision, Mission, and Values/Strategic Business Plans/Supporting Strategic Plans through Operations

operations Strategy 35Core Competencies and Competitive Strategy/Process Selection/Product Life Cycle/Productivity

Summary 45, key Terms 46, Discussion Questions 46, Problems 46 Case Study: Rothera Point Utilities 48

Chapter 3 Product Quality and Development 51Multiple dimensions of Product Quality 52Quality as Conformance/Quality as Perception and Expectations/Quality as Improvement

Total Quality Management 55Distinguishing Features/Problem-solving Tools/Standards and Best Practices/Vulnerabilities

Product development 65Designing for the Customer/Designing for Production

Summary 76, key Terms 76, Discussion Questions 77, Problems 77 Case Study: Summertime Contracting 80

Chapter 4 Forecasting 85Forecasting Approaches 86Qualitative Forecasting/Quantitative Forecasting/Selecting a Qualitative versus a Quantitative Approach

evaluating Forecasts 89Accuracy/Responsiveness/Cost

Associative Techniques 94Regression Analysis/Calculating a Linear Regression Equation/Relevant Range and Nonlinear Relationships

Time Series Techniques 101Time Series Decomposition/Simple Time Series Techniques/Prediction versus Historical Analysis

Summary 114, key Terms 115, Discussion Questions 115, Problems 115 Case Study: Tiger Stripe Copy Center 121

PART 1

eSSeNTiAlS

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x

Chapter 5 Capacity and Waiting 123Capacity Planning 124Measuring Capacity/Capacity Strategies

The Formation of Waiting lines 132Customer Arrivals/The Queue/Capacity of the System

Mathematical Models of Waiting 140M/M/1 Model/Other Models

Psychological Models of Waiting 143Absolute versus Perceived Time/Factors Influencing Perceived Time

Summary 146, key Terms 146, Discussion Questions 146, Problems 147 Case Study: WMA exit 53 Toll Plaza 152

Chapter 6 Process and Facility Selection 155Process Strategies 156Make-to-Stock/Make-to-Order/Assemble-to-Order

Product layouts 158Advantages and Disadvantages/Designing a Product Layout/Creative Applications

Process layouts 170Advantages and Disadvantages/Designing a Process Layout

other Types of layouts 178Hybrid Layouts/Fixed-Position Layouts

Summary 180, key Terms 181, Discussion Questions 181, Problems 181 Case Study: Myer Wine Racking and Cellar Company 186

Chapter 7 Project Management 189The essentials of a Project 190Terminology/Methodologies

Critical Path Management (CPM) 192Network Analysis/Task Timing/Project Crashing

Project evaluation and Review Technique (PeRT) 208Probabilistic Task Times/Analyzing a Network/Estimating Risk

Summary 217, key Terms 217, Discussion Questions 217, Problems 218 Case Study: dalvey Point Storm Water Upgrade Project 223

Chapter 8 Location Planning and Logistics 227Forces influencing location 228Input Factors/Output Factors/Indigenous Factors/Globalization

location Planning Techniques 230Center of Gravity/Factor Rating/Cost versus Volume Analysis

Supply Chain logistics 242Transporting Goods/Transporting Services/Transporting Information

Forces influencing logistics 246Economies of Scale/Speed and Accessibility/Supply Chain Linkages

Summary 250, key Terms 250, Discussion Questions 250, Problems 250 Case Study: Celvin FoodStuff 255

PART 2

PlANNiNg oPeRATioNS

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Contents xi

PART 3

MANAgiNg oPeRATioNS

Chapter 9 Purchasing and Supply Chain Partnering 257Supply Chain Basics 258

Strategic Supply Chain Partnering 259Structuring the Supply Chain Function/Selecting Supply Chain Partners/Tools for Supply Chain Partnerships

operating a Supply Chain 267Legal and Regulatory Considerations/Diversity and Ethics/Sustainability/Supply Chain Risks

The Purchasing Process 272Tender Evaluation Methods/Tactical Acquisitions

Summary 275, key Terms 275, Discussion Questions 276, Problems 276 Case Study: Champions’ gate Sports Camp 279

Chapter 10 Inventory Management 283The Nature of inventory 284Types of Inventory/Costs of Inventory/Inventory Policies/Inventory Dynamics

Fixed order Quantities 292Economic Order Quantity/Economic Order Quantity with Price Breaks/Economic Production Quantity

Reorder Points 303Demand During Lead Time/Performance Measures/Determining Reorder Points/Deriving Distributions for Demand During Lead Time

Summary 311, key Terms 311, Discussion Questions 311, Problems 312 Case Study: denton Pet Clinic 316

Chapter 11 Aggregate and Material Requirements Planning 319Aggregate Planning Strategies 320Aggregation/Essential Approaches

developing Aggregate Plans 327Introducing Inventory Logic/Implementing Other Options/Selecting a Plan and Replanning

Material Requirement Planning 337Independent and Dependent Demand/Bill of Materials/Master Production Schedule

developing Material Requirements Plans 346MRP as an Information System/Advantages and Disadvantages of MRP

Summary 356, key Terms 356, Discussion Questions 356, Problems 357 Case Study: Myer Wine Racking and Cellar Company, Revisited 362

Chapter 12 Lean Operations 365evolution of inventory Systems 366Reorder Point Systems/Material Requirements Planning/Lean Operations/JIT

Mechanics of lean Systems 367Reducing Lot Sizes/Signaling Replenishment/Smoothing Production

Philosophy of lean Systems 376Elimination of Waste/Visibility and Flexibility/Close Relationships with Suppliers/Continuous Improvement

Summary 381, key Terms 381, Discussion Questions 381, Problems 382 Case Study: Rothera Point Power Plant 384

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xii Contents

Chapter 13 Quality Control 387The Nature of Variation 388Natural Process Variation/Assignable Process Variation/Statistical Process Control

Traditional Quality Control 395Distinguishing Features/Vulnerabilities

designing Control Charts 398Mean Charts with Known Variation/Mean Charts with Unknown Variation/Control Charts for Attributes

Acceptance Sampling 409Operating Characteristic Curves/Average Outgoing Quality

Summary 412, key Terms 413, Discussion Questions 413, Problems 413 Case Study: exit 53 WMA Fast lane Toll System, Revisited 417

Chapter 14 Scheduling and Real-Time Operations 419Scheduling environments 420Long Planning Horizons/Medium Planning Horizons/Short Planning Horizons

Single Work Center Scheduling 422Evaluating Sequences/Priority Rules/Personal Time Management

Multiple Work Center Scheduling 429Johnson’s Rule/Gantt Charts/Critical Ratio/General Approaches/Bottleneck Scheduling

Real-Time operations 441Uncertainty and Criticality/Successful Practices

Summary 445, key Terms 445, Discussion Questions 445, Problems 446 Case Study: Tiger Stripe Copy Center, Revisited 449

Chapter 15 Incident and Disruption Management 451Understanding disruption 452Traditional Decision Theory/Types of Risk/Types of Disruption/Vulnerabilities of Modern Operations

Planning for disruption 464Business Continuity Planning/Reliability and Redundancy/Strategic Risks in Tactical Decisions

operating despite disruption 474Temporary Organization/Performance/Disaster Logistics

Summary 482, key Terms 483, Discussion Questions 483, Problems 483 Case Study: Convex Productions, Revisited 485

Appendix A Answers 489Appendix B z-Values from Infinity to z 494Appendix C z-Values from Zero to z 495

Index 496

PART 4

ACTioN ANd AdAPTioN

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